A New Tax System (Goods and Services Tax) Act 1999

Chapter 2 - The basic rules  

Part 2-4 - Net amounts and adjustments  

Division 21 - Bad debts  

21-15   Bad debts written off (creditable acquisitions)  

(1)    

You have an increasing adjustment if:

(a) you made a * creditable acquisition for * consideration ; and

(b) the whole or part of the consideration is * overdue , but you have not provided the consideration overdue; and

(c) the supplier of the thing you acquired writes off as bad the whole or a part of the debt, or the whole or a part of the debt has been overdue for 12 months or more.

The amount of the increasing adjustment is 1/11 of the amount written off, or 1/11 of the amount that has been overdue for 12 months or more, as the case requires.

(2)    
However, you cannot have an * adjustment under this section if you * account on a cash basis .